When you’re about to invest in real estate crowdfunding, this is a relatively common issue. The interesting point here is that in fact you don’t need too much money to make your first investment.
When I first heard of crowdfunding in real estate, I thought you needed thousands of dollars. You needed about 1k when it first began, but even that amount has shrunk on some investments. I’ll recommend some websites in this article, which you can invest under 1k minimum:
Website 1: Fundrise
You can put $500 into Fundrise. The other benefit is that you can choose to redeploy your dividends into the fund or pay them into your bank account. Dividends are distributed annually. The other benefit of this fund is that they have several different funds that you can put money in from different parts of the US: East Coast, West Coast, Midwest, and so on. Read full Fundrise review here.
Website 2: Realty Mogul
For 1k you can invest in Realty Mogul 1 and 2. Like Fundrise, you redistribute your dividends into the fund or your bank account. The Realty Mogul 1 is a debt-type fund which will pay your distributions monthly. Mine paid 8 percent a month, and since I put money into the fund, it has been consistent. The Realty Mogul 2 (Multifamily) is an investor in equities and pays distributions on a quarterly basis. This is a newer fund more suited for long-term saving.
Website 3: Rich Uncles
You can invest 500 dollars in any of their two funds. There’s both a National Fund and a student fund that’s just opened up to investors. The only downside to the student fund is that you have to mail in a check to make the donation. They expect bank transfers online to be added fairly soon. You will use bank transfer if you want to deposit into the National Fund.
There are three separate websites where you can invest with under 1k today. Don’t let the thought of spending too much in real estate deter you from spending now! The sooner you start your portfolio of real estate crowdfunding, the faster you can start getting the gains that can be made from the opportunities that are available.